The Reaction of the Financial Sector to the Collapse of the Silicon Valley Bank (Svb)

This paper examines how financial sectors worldwide responded to the collapse of the Silicon Valley Bank (SVB). The analysis of the abnormal returns (AR) in 43 countries from six regions surrounding the bankruptcy of SVB on the 10th of March 2023 revealed a substantial negative impact on aggregate financial sector indices, specifically during the post-event days, where the European financial sector is noted to have the highest negative response. The country-level analysis revealed negative cumulative abnormal returns (CARs) during the post(pre)-event window for most(some) countries. However, Korea, New Zealand, Vietnam, Canada, and Israel are mainly unaffected